After a successful vote at the DAO, the decentralized lending platform Aave is getting ready to deploy the third edition of its protocol on Ethereum.
According to Aave, after the first setup has been finished, the pool will offer pre-approved tokens such as WBTC, WETH, wstETH, USDC, DAI, LINK, and AAVE. Other tokens that will be listed include wstETH.
In spite of the fact that Aave V3 had been released and was operational on a number of other blockchain networks, including Avalanche, Optimism, Polygon, Arbitrum, Fantom, and Harmony, the Ethereum pool continued to use the more outdated version V2.
There will be some new features added to Ethereum, such as an efficiency mode that will be referred to as “eMode,” however these additions will be restricted, said Aave.
When Aave v3 is launched on Ethereum, the feature known as “isolation mode,” which is another essential component of the new version and allows for borrowing of a newly listed, hazardous asset up to a certain debt limit, will not be activated for all assets.
The third edition of the protocol will coexist with the second one. This is due to the fact that the DAO elected to proceed with a whole new deployment of version 3 rather than deprecating version 2, which led to this result. Users thus have the option of moving their positions from 2 to 3 of the platform.
The most significant DeFi lender in terms of total volume locked is Aave v2 on Ethereum. According to DeFiLlama, the protocol exercises control over assets worth more than $3.5 billion dollars.